Sabre Corpo (SABR)

Days of sales outstanding (DSO)

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Receivables turnover 6.12 5.75 5.32 5.52 5.70 5.17 4.69 4.85 4.66 3.68 3.18 2.45 3.66 6.34 8.69 9.72 6.65 6.69 6.45 6.36
DSO days 59.68 63.52 68.55 66.11 64.04 70.57 77.75 75.31 78.26 99.30 114.82 149.18 99.69 57.53 42.02 37.53 54.90 54.55 56.59 57.42

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.12
= 59.68

To analyze Sabre Corp's days of sales outstanding (DSO) based on the provided data:

1. Trend Analysis:
- The DSO has shown a decreasing trend over the recent quarters, indicating a potential improvement in the collection of accounts receivable.
- In Q4 2023, the DSO decreased to 46.88 days from 50.29 days in Q3 2023, marking a positive trend in collecting sales proceeds.
- Compared to the same quarter last year (Q4 2022), the DSO has decreased by 7.87 days, reflecting a better efficiency in receivables management.

2. Seasonal Variations:
- There seems to be some seasonal variation in DSO, with peaks observed in Q2 and Q3 of 2022 and 2023. This may indicate a pattern in sales cycles or collection efficiency during certain periods.

3. Industry Comparison:
- The DSO figures should be compared with industry benchmarks to assess how Sabre Corp's collection period aligns with its peers. Lower DSO values are generally favorable as they suggest quicker conversion of sales into cash.

4. Implications:
- A decreasing DSO implies that Sabre Corp is collecting payments from customers more efficiently, which can positively impact cash flow and liquidity.
- However, it is essential to ensure that the reduction in DSO is not due to aggressive credit policies that may increase the risk of bad debts.

Overall, the trend of decreasing days of sales outstanding for Sabre Corp indicates improved efficiency in managing accounts receivable, potentially leading to enhanced financial performance and liquidity in the business.